Retire Early
Lifestyle
Retirement; like your parents, but way cooler
In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience. |
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Benefits of Investing in Real Estate
Jonathan Pearson
Pexels
Investing in real estate is a fantastic way
to diversify your portfolio. Rather than putting all your eggs in one basket,
buying real estate allows you to have a back up. Therefore, no matter what
happens in your career, you’ll always have a way to make money.
Real estate can be very lucrative with the
more experience you gain. There are tons of benefits to investing your money in
property. Take a look at some of the top reasons many people get into the real
estate industry.
Passive Income
You can earn passive income in many ways
with real estate. Firstly, you can hold on to the properties you invest in and
rent them for a monthly income. This means having to be available for
maintenance of the property but the income is often high.
Secondly, you could invest in commercial
buildings and then hire a property management company to handle them. This makes
your income entirely passive.
Tax Benefits
As someone who invests in real estate, you
may be able to take advantage of some tax benefits. For example, the Act 60 tax
benefits that many people have been flocking to. You can find out more about
Act 60 requirements before your property searches.
It’s vital that you look into tax benefits
before bidding on properties. You may be entitled to claim back the interest you
pay on your mortgage or deduct depreciation for some residential and commercial
properties. Talk to a financial advisor about any tax benefits you could be
entitled to.
Build Capital
Real estate is one of the best ways to
build capital. Although the first property you buy may be highly leveraged,
there’s often the possibility of selling it for more somewhere down the line.
The more properties you invest in, the more profit you stand to make.
It takes money to make money but once
you’ve got the ball rolling, you can build until you’ve had enough. The sky is
your limit when it comes to property investment.
Choose Your Level of
Involvement
It’s your choice as to how much time you
put into property investment. You may want to
buy a
fixer-upper and spend your time working on it until it’s ready to sell for a
profit. If you don’t want to invest that much time into property, there are
other options.
You can pay laborers to do the work for you
or you could buy a property at a good price and wait for the market to improve
before selling. When it comes to property investment, you can have as much or as
little involvement as you like, as long as money is on your side.
Family Heirloom
It isn’t always about making money.
Investing in property can be what provides security for you and future
generations. Property is an asset that can be passed down as an heirloom,
providing a financial cushion for children and grandchildren.
If you’ve found this article helpful, take
a look at the others.
About the Authors
Retire
Early Lifestyle appeals to a different
kind of person – the person who prizes their
independence, values their time, and who doesn’t
want to mindlessly follow the crowd.
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